Car insurance is a crucial aspect of responsible vehicle ownership. Insurance provides financial protection against potential losses resulting from accidents, theft, or other unforeseen events. In this article, we'll dig into the basics of car insurance to help you understand its key parts and why it's essential & required to drive in all but two states.
Below are the most common coverage types that you will see and likely need.
Covers repair or replacement costs for your vehicle in the event of a collision with another vehicle or object. This is a first party (you) coverage so fault is not relevant.
Protects against non-collision events such as theft, vandalism, natural disasters, or animal collisions.
Property Damage and Bodily Injury will cover costs of damage and injury to the other driver should you be at fault and up to the limits you purchased.
Steps in when the at-fault party has insufficient or no insurance to cover your damages. There are some nuances around this coverage type so we’ll create a page dedicated to this coverage soon.
Pays for medical expenses for you and your passengers, regardless of fault, in the event of an accident.
Similar to MedPay but includes additional coverage such as lost wages and rehabilitation expenses.
The Basics
The list below is not all inclusive but does provide some of the common factors that will impact your car insurance rate.
A clean driving record generally results in lower premiums, while accidents and traffic violations may increase your rates.
Younger drivers often face higher premiums due to a perceived higher risk. Additionally, males may have higher rates than females but in general young drives can expect their rates to come down a bit once you hit age 25.
The make, model, and year of your car will impact your insurance premium. High-performance or luxury cars may have higher premiums due to higher repair and replacement costs.
Higher coverage limits and lower deductibles typically lead to higher premiums. This is because this would mean your insurance company will be exposed to more loss expenses so they will charge higher rates to assume the added cost.
In many states, your credit history can influence your insurance rates.
Car insurance and car insurance terms aren't too interesting. To help ease the pain, here are some common terms that help to know and understand.
The amount you pay for your insurance company to step in for you, financially, typically on a monthly basis but usually companies will offer an additional discount if you pay your full premium up front.
The amount you must pay out of pocket before your insurance coverage kicks in. It's important to understand that this means your deductive is first out meaning your deductible is the first part of your claim that you must pay then your insurance company kicks in for the balance.
A contract between you and your insurance company outlining the terms and conditions of coverage. Your Dec page is typically one page that lists your coverages, specifically, to include the coverage amount and the premium for each coverage purchased.
A request made to your insurance company for compensation or coverage for a loss. Note the claim date and loss date may be different but we highly suggest you file a claim the same day of your loss.
The process by which insurance companies assess the risk and determine the premium for a particular policy.
Below are a few key tips to follow as you look to compare rates and find your savings. When you call and speak to one of our agents, be sure to mention them and always ask that they check for all discounts available to you.
The best way to save on pretty much anything is to compare rates or prices. If you go direct to an insurance company site you will only see their rate. If you use a nationally licensed agency that can quote your insurance with multiple companies at the same time, you increase your chances of saving. That's what you get with Raise - so compare today and save!
Consider bundling auto insurance with other policies (e.g., home insurance) for potential discounts. Most insurance companies will offer discounts if you buy Auto and Home insurance from them.
We know, this is an obvious one. However, keep in mind that moving violations can and likely will increase your rates. So next time you have the urge to "step on it," just now it could carry a high price, literally and figuratively. Believe us, we all know!
Then why have insurance, right? We git it, we really do. Opting for higher deductibles can lower your premium, however, be prepared to pay more out of pocket in the event of a claim. Moving your collision deductible from $500 to $1000k can result in significant savings so if you go this route, definitely drive safe!
This can result in significant savings so be sure to inquire about available discounts, such as safe driver discounts, multi-car discounts, or good student discounts and others. Discount types vary by company so be sure you confirm with your agent which discounts you can benefit from.
We are here to help Raise your awareness, get informed and provide you with an easy pathway to savings!
We absolutely will reach out to you within 24 hours, promise!
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